02/09/2009 (Food Business Review.com) - The company to have 76.2% stake in the palm oil plantation

Feronia has concluded the purchase of Unilever’s palm oil plantation located in the Democratic Republic of Congo (DRC). The total concession is approximately 100,000 hectares.

With the acquisition, Feronia has a 76.2% ownership stake in the palm oil plantation, Plantations et Huileries du Congo S.C.A.R.L. (PHC).

James Siggs, CEO of Feronia, said: “We are very enthusiastic about the long-term potential of PHC and the implementation of large-scale mechanized farming in the Democratic Republic of Congo and elsewhere in Sub-Saharan Africa. We look forward to working with PHC’s team, whose expertise is unparalleled in the agriculture industry in Africa.”

With virtually all required infrastructure already in place at PHC, the majority of capital expenditures made by Feronia is said to be on new plantings. Feronia will be acquiring the plantation unencumbered by any debt.

The company said that it currently employs approximately 4,300 people and will utilize its workforce at PHC as a basis for its expansion through the Democratic Republic of Congo.

Bill Dry, COO-processing of Feronia, said: “The existing infrastructure and experienced workforce is a tremendous asset to Feronia which enables us to implement an expansion and refurbishment program at the plantation without any delay.”